NetEaseNETTF -0.98%94 ROC (Joel Greenblatt) % is 600.23% as of Mar. 2026, which is 95% above its 10-year median of 308.27. GuruFocus rates NETTF with a GF Score™ of 94/100 and a GF Value™ of $24.76 (Fairly Valued). Among 550 Interactive Media companies, NetEase ranks better than 87.45% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. NetEase's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 600.23%.
The historical rank and industry rank for NetEase's ROC (Joel Greenblatt) % or its related term are showing as below:
NETTF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 201.04 Med: 308.27 Max: 541.52
Current: 451.43
During the past 13 years, NetEase's highest ROC (Joel Greenblatt) % was 541.52%. The lowest was 201.04%. And the median was 308.27%.
NETTF's ROC (Joel Greenblatt) % is ranked better than 87.45% of 550
companies
in the Interactive Media industry
Industry Median: 20.15
vs NETTF: 451.43
NetEase's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 7.20% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for NetEase's ROC (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NETTF vs EA, TTWO, RBLX: ROC (Joel Greenblatt) % Comparison
For the Electronic Gaming & Multimedia subindustry, NetEase's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NetEase ROC (Joel Greenblatt) % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where NetEase's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a ROC (Joel Greenblatt) % of 600.23% mean?
NetEase (NETTF) has a ROC (Joel Greenblatt) % of 600.23% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on NetEase and its competitors. This is 95% above median its historical median of 308.27. Over the past decade, NetEase's ROC (Joel Greenblatt) % has ranged from 201.04 to 541.52. According to the industry distribution chart, NetEase ranks #69 out of 550 companies in the Interactive Media industry, placing it in the top 12.5%.
Is NetEase's ROC (Joel Greenblatt) % too high?
NetEase's current ROC (Joel Greenblatt) % of 600.23% is 95% above median its 10-year median of 308.27. Over the past 10 years, this metric has ranged from a low of 201.04 to a high of 541.52. The Interactive Media industry median ROC (Joel Greenblatt) % is 20.15. NetEase's value of 600.23% is 2878.8% above this industry median. Based on the distribution chart, NetEase ranks #69 out of 550 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, NetEase has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NetEase's ROC (Joel Greenblatt) % compare to EA and TTWO?
According to the Interactive Media industry distribution chart, NetEase ranks #69 out of 550 companies for ROC (Joel Greenblatt) %. This places NetEase in the top 13% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 20.15. NetEase's value of 600.23% is 2878.8% above this benchmark. Historically, NetEase's own ROC (Joel Greenblatt) % has ranged from 201.04 to 541.52 over the past decade. While the company's 10-year median is 308.27 vs. the industry median of 20.15, NetEase has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for an Interactive Media company?
The median ROC (Joel Greenblatt) % among Interactive Media companies is 20.15, based on 550 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase's current ROC (Joel Greenblatt) % of 600.23% is 2878.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on NetEase and its competitors. For the Interactive Media industry, the median ROC (Joel Greenblatt) % is 20.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase's current ROC (Joel Greenblatt) % is 600.23%, which is 95% above median its own 10-year median of 308.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetEase stock overvalued right now?
Based on GuruFocus' analysis, NetEase (NETTF) is currently considered Fairly Valued. The stock's GF Value™ is $24.76, compared to a current price of $24.26 — trading 2% below its estimated fair value. The current ROC (Joel Greenblatt) % is 600.23%, which is 95% above median its 10-year median of 308.27 and 2878.8% above the Interactive Media industry median of 20.15. NetEase's overall GF Score™ is 94/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For NetEase (NETTF), the current ROC (Joel Greenblatt) % is 600.23% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NetEase (NETTF) Overvalued in 2026?
Based on GuruFocus' analysis, NetEase stock appears to be undervalued.
The current stock price of $24.26 is trading 2% below its estimated GF Value™ of $24.76.
GuruFocus considers NetEase to be Fairly Valued.
Key valuation signals for NETTF:
ROC (Joel Greenblatt) %: 600.23% (95% above median its 10-year median of 308.27)
GF Value™: $24.76 vs. price of $24.26 (2% below fair value)
Industry Position: 2878.8% above the Interactive Media median (#69 of 550)
No single metric tells the full story. See the NETTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in the late 1990s as an internet portal, NetEase has evolved into China's second-largest online gaming company. Its early success was anchored by the massively multiplayer online role-playing game Fantasy Westward Journey, which laid the foundation for a durable franchise strategy. Over the past decade, the company has expanded its portfolio with successful titles such as Justice, Identity V, Naraka: Bladepoint, and Eggy Party, all of which continue to maintain sizable and engaged player bases.In addition to its in-house development capabilities, NetEase partners with global IP holders such as Microsoft and Marvel to develop and publish titles based on established franchises, including World of Warcraft, Diablo Immortal, and Marvel Rivals, further strengthening its global presence.
94GF Score
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